U.S. GAAP and IFRS on accounting for repurchases and reissuances of treasury shares follow the principle that treasury stock purchases and sales are operating transactions and therefore debits Cash (for economic gains) or credits Cash (for economic losses)
Indicate whether the statement is true or false
F
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Referring to Table 2.1, the United Kingdom gains most from trade if
a. 1 ton of steel trades for 2 televisions. b. 1 ton of steel trades for 3 televisions. c. 2 tons of steel trade for 4 televisions. d. 2 tons of steel trade for 5 televisions.
Throughout the world, governments auction quota licenses
a. never. b. always. c. often. d. seldom.
Allan and Ralph are partners. Allan has a capital balance of $92,000 and Ralph has a capital balance of $75,000. Carol invested $60,000 to acquire an ownership interest of $50,000. Which of the following is TRUE of the impact of the transaction on the balance sheet?
A) Asset increases and the equity will remain unchanged. B) Both assets and equity will increase. C) Assets will increase and equity will decrease. D) Assets will decrease and the equity will remain unchanged.
Securitization delays the receipt of cash from sales made on credit
Indicate whether the statement is true or false